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August 7, 2017

How Did Medicare Payroll Taxes Change in 2013?

Starting January 2013, taxes will increase for individuals making more than $200,000 a year and couples making more than $250,000.The Medicare payroll tax applies to all salary incomes, and is shared equally by employees and employers. Currently, a worker pays 1.45 percent toward Medicare, as does an employer. On January 1, 2013, the tax will rise by 0.9 percent for individuals earning more than $200,000 per year and for couples earning more than $250,000. For those earning above these levels, the total tax will be 2.35 percent for workers. However, the employer tax rate will remain at 1.45 percent. Self-employed individuals will also have to pay the additional 0.9% tax on theirnet self-employment income that exceeds the threshold.